Starting the night of Thanksgiving, we spend, spend, and spend through the end of year, sometimes blowing past the natural constraints of our finite amounts of money.

December holidays have become famous for ruining January finances. From food to travel to gifts — oh yes, gifts — the end of the calendar year has a way of separating people from their money under the guise of tradition and familial love. The result is starting the next calendar year in the red.

The holiday spending mistake people generally make is they try to jam their increased spending into their cash flow during the last six weeks of the year. Inevitably, this results in overspending, which then leads to mistimed bills in January. If you’ve ever experienced running low on money just as your bills come due, it’s because you tried to cram unusual expenses into your normal cash flow.

What is Thanksgiving through the end of December? It’s nonstop cramming unusual expenses into normal cash flow. Now you see the problem we’re trying to solve. Don’t forget that you’ll likely spend more money on food and travel during the final month of the year, as well. Which is yet another reason why you need to find a way to handle your gift budget before it manhandles you.

About a decade ago, my wife and I decided to stop letting December happen to us. We instead decided to divide the financial responsibilities of December holidays over a four-month period. We called it the Holiday Savings League. You should join the league. There’s no signup, no fees, and no prizes. Fine, it’s not so much a league as it is a great way to experienced the holidays in a relaxing and responsible way. Nonetheless, I still call it a league.

If you’re upset I’m talking about December holidays prior to Labor Day, I understand your consternation. I saw Halloween decorations at my local big-box store the first week of August, and I wanted to scream “stop rushing me!” But I’m not asking you to decorate for the holidays, I’m simply asking you to budget for the holidays. There’s a big difference.

Want to join the league? Here’s what you do. Make a list of all the people you plan on buying holiday gifts for in December. Then, in what will be the most cathartic exercise of the year, write down a dollar amount next to their name representing how much money you’d like to spend on each person. There’s nothing quite like seeing the different amounts you plan on spending on different family members and friends to reinforce your long-felt emotions. I’m kidding. Kinda.

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Add 'em all up, and note your total. Maybe it’s a big number, or maybe it’s a small number. Either way, it will be easier to deal with when you divide it by four. Divide it by four.

Over the next four months, you will need to make four cash withdrawals. Every month, put the cash in an envelope with the list of whom you’re buying for and what you’re spending on them. For instance, if you add up your “buy for” list and it totals $480, then you’ll withdrawal $120 in cash in September, October, November, and December. Now, instead of trying to fit $480 into your December cash flow, you’ll spread out the damage over a four-month period.

Here’s what will happen: You will underspend.

Having a physically finite amount of money to spend forces you to stay within your budget. If you spend too much on Uncle Owen, then you are taking money away from your gift budget for Aunt Beru. Because you don’t want to do that, you will underspend on most of your family members. At the end of the buying season, you can either redeposit the money into your account or donate it to your favorite local charity.

If you happen to not have your envelop with you or you’re making a purchase online, just deposit the appropriate amount of cash back into your checking account after you’ve made the non-cash purchase. Sure you can cheat and just keep the cash and break the seemingly unimportant and arbitrary rules, but if you do, you’ll know you’re compromising your January and I’ll kick you out of the league.

And, it should go without saying, but it won’t, keep your cash envelope in a safe place. Enjoy January.

Have a question for Pete the Planner? Email him at AskPete@petetheplanner.com or visit petetheplanner.com.

Where to watch

Tune in to Pete the Planner, who also is Fox59’s personal finance expert, at 8:15 a.m. Wednesdays.